OFFICE OF THE INSPECTOR GENERAL, AUDIT DIVISIONANALYSIS AND SUMMARY OF ACTIONS NECESSARYTO CLOSE THE REPORT

Recommendation Number:

Resolved. This recommendation can be closed when we receive a copy of the
issued, revised program statement that: a) provides a monetary threshold below which real
property acquisition costs are expensed, b) clearly establishes criteria in accordance
with SFFAS No. 6, and c) clearly defines terms for capitalizing or expensing common
construction activities.

Resolved. This recommendation can be closed when BOP provides
documentation that the capitalizing and expensing of real property is being monitored.
Please provide us with a copy of the revised Program Review Guidelines used to monitor the
capitalization and expensing of real property.

Resolved. This recommendation can be closed when we receive a copy of the
memorandum from BOP directing the Regional Offices to review previously closed B&F
projects, including the criteria by which they should do so. Also, please forward to us a
summary of the adjustments made to real property and depreciation as a result of these
reviews.

Resolved. This recommendation can be closed when we receive a copy of the
issued Program Statement Number 2043.01 dated March 5, 1997, addressing procedures the
institutions should follow to close B&F projects timely.

Resolved. This recommendation can be closed when we receive a copy of the
instructions issued to BOP Comptrollers and Controllers directing them to review and
adjust real property depreciation calculations that were done incorrectly. The
instructions should include detailed criteria that the Comptrollers and Controllers will
use to determine if corrections are necessary. When these reviews are completed, please
forward a summary of the adjustments made.

Resolved. This recommendation can be closed when we receive a copy of a
revision to the BOP Accounting Management Manual that clarifies, as necessary, the
distinction between accounts payable and undelivered orders.

Resolved. This recommendation can be closed when we receive a copy of a
memorandum from the Finance Branch clearly communicating the importance of distinguishing
undelivered orders from accounts payable and which requires, at a minimum, that all
accounting sites: a) review all obligations and remove undelivered orders improperly
recorded as accounts payable by an established cutoff date, and b) ensure all future
obligations are correctly recorded into the accounting system.

Resolved. This recommendation can be closed when we receive a copy of the
May 5, 1997 revision to the Accounting Management Manual, Change Notice 63, requiring
institutions to reconcile their CWIP account 190.0 to the corresponding subsidiary ledger
report 100.73 each month.

Resolved. This recommendation can be closed when we receive a summary of
the journal entries made to correct the general ledger as a result of performing a proof
check of account 190.0.

Resolved. This recommendation can be closed when we receive a copy of
Program Statement 2043.01 issued on March 5, 1997, establishing the procedures to ensure
values from the Central Office general ledger are removed when the asset is recorded on
the institution's general ledger.